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M&HCV and LCV goods carriers deliver the goods in strong Q1 FY2023

After two difficult years, there is a welcome return of demand for CV OEMs, particularly goods carriers as the benefits of government spend on infrastructure percolate to M&HCVs and the e-commerce boom powers LCVs.

By Ajit Dalvi

17 Jul 2022

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Sales of medium and heavy commercial vehicles (M&HCVs) has risen to 75,685 units / 159% in April-June 2022.

E-commerce boom and demand for last-mile deliveries is driving LCV sales, which are up 94% to 148,827 units in Q1 FY2023.

With rural India in revival mode, demand for tractors is on the upswing. And the CV industry is helping the road to the fields.

Transporters are benefiting as passenger vehicle OEMs are transporting all they can manufacture to showrooms across India. PV sales grew 41% YoY to 910,431 units in the April-June 2022 period.

Massive infrastructure spend by the government is driving economic activity. CV OEMs are helping with the heavy lifting of goods.

M&HCV and LCV goods carriers deliver the goods in strong Q1 FY2023

One of the heartening takeaways from the industry wholesales numbers for Q1 FY2023, released by apex body SIAM on July 13, has been the revival of demand for the Indian commercial vehicle (CV) industry. Sales and demand for the CV industry follow a cyclical pattern and after four years of growth (FY2016 to FY2019), FY2020 saw the slowdown kicking in with sales down 29% to 717,593 units.

But little did the industry know that worse was to follow as the beginning of FY2021, when the Covid-19 pandemic had enveloped the world and India. April 2020 turned out to be ...

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